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Portugal utility starts search for LNG carrier

European electricity supplier Energias de Portugal (EDP) has started making early enquiries in the market for an LNG carrier to take on term charter.

Brokers say EDP has approached some shipowners and is checking out overall availability on vessels.

The company is understood to be considering taking a ship on mid to longer-term charter but a formal tender has yet to be issued.

When this emerges, it is likely to provide welcome business for owners who have been experiencing something of a drought in mid-term business opportunities, after spot and term enquiries fell away in the past two months.

EDP is seeking tonnage to lift the 770,000 tonnes per annum of LNG it is buying from Cheniere Energy’s Corpus Christi LNG plant in the US under a 20-year, free-on-board sale and purchase agreement.

The gas buyer signed up to its US purchases in 2014, but the deal was dependent on Cheniere taking a final investment decision (FID) on building a third train at the new facility.

Cheniere gave the nod to proceed with the construction of the third, 4.5-million-tonne-per-annum liquefaction unit at Corpus Christi in February and it hopes to take a FID on train 3 by the middle of this year.

Portugal took in Europe’s first shipment two years ago from the new wave of US LNG exports.

The first shipment arrived at the country’s Sines LNG terminal in April 2016 onboard the 174,000-cbm Creole Spirit (built 2016). The shipment was loaded from Cheniere’s Sabine Pass LNG terminal and delivered to Galp Energia for gas distribution on the Iberian Peninsula.

EDP is the largest generator, distributor and supplier of electricity in Portugal and also has operations in Spain.

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Portugal utility starts search for LNG carrier

European electricity supplier Energias de Portugal (EDP) has started making early enquiries in the market for an LNG carrier to take on term charter.

Brokers say EDP has approached some shipowners and is checking out overall availability on vessels.

The company is understood to be considering taking a ship on mid to longer-term charter but a formal tender has yet to be issued.

When this emerges, it is likely to provide welcome business for owners who have been experiencing something of a drought in mid-term business opportunities, after spot and term enquiries fell away in the past two months.

EDP is seeking tonnage to lift the 770,000 tonnes per annum of LNG it is buying from Cheniere Energy’s Corpus Christi LNG plant in the US under a 20-year, free-on-board sale and purchase agreement.

The gas buyer signed up to its US purchases in 2014, but the deal was dependent on Cheniere taking a final investment decision (FID) on building a third train at the new facility.

Cheniere gave the nod to proceed with the construction of the third, 4.5-million-tonne-per-annum liquefaction unit at Corpus Christi in February and it hopes to take a FID on train 3 by the middle of this year.

Portugal took in Europe’s first shipment two years ago from the new wave of US LNG exports.

The first shipment arrived at the country’s Sines LNG terminal in April 2016 onboard the 174,000-cbm Creole Spirit (built 2016). The shipment was loaded from Cheniere’s Sabine Pass LNG terminal and delivered to Galp Energia for gas distribution on the Iberian Peninsula.

EDP is the largest generator, distributor and supplier of electricity in Portugal and also has operations in Spain.